CITY RELAXES WATER DISCONNECTION RULE FOLLOWING GET-TOUGH POLICY

Cape Girardeau city officials have adopted a more lenient water cutoff policy after a "get-tough" policy proved to be money down the drain.

"We were losing money doing it," City Manager Michael Miller said of the tougher policy, which was enacted months before he was hired.

"It would have ended up costing the city $15,000," Miller said.

Miller said the stricter policy has reduced bad debt. Based on the first six months of the stricter policy, the city could expect to reduce bad debt expense by $16,500 over the course of a year.

But the city's postage costs have increased because of more cutoff notices being mailed, and the city's late-fee revenue has declined, Miller said.

As a result, the net revenue was projected to drop by about $15,000 over the course of the year.

Miller said the new policy makes better sense financially and should help the customers too. "We don't have to cut the people off that quickly."

The City Council has informally approved the plan, and will officially adopt it by ordinance next month.

Councilman Melvin Gateley welcomed what he views as a common-sense change. He said billing procedures should be geared to the majority of city customers who pay their bills on time.

The new policy will take effect this spring. Under the plan:

-- Customers won't have their water turned off until after their bills have been delinquent for two consecutive months. That provision mirrors the one that was in place before last April.

-- Disconnect notices will be mailed at least 15 working days prior to the scheduled water shutoff date instead of five working days as is currently the case.

-- Customers can appeal the city's decision to shut off their water. Written appeals must be submitted to the city manager no later than two weeks after the water has been turned off. Decisions will be rendered within two weeks of the appeal.

-- The deposit for residential customers will be doubled to an amount equal to twice the average monthly residential bill, or about $80.

The deposit only applies to new customers who can't demonstrate they have a good payment record, and customers who have been disconnected and wish to have their water service restored.

Last April, the city staff adopted a stricter policy on shutting off water service to customers whose city utility bills were delinquent.

The policy generated a steady stream of criticism from customers whose water service was shut off. In one case, the city shut off service to a southside church over an $11.35 water bill.